Coal to supply half of India’s power through 2035-36 as demand surges

New Delhi: India expects coal to supply about half its electricity through 2035-36 as surging power demand forces the country to rely on thermal generation alongside a rapid expansion of renewable energy, senior power ministry officials said on Thursday.

"Thermal is here to stay for a long time," said Aadhar Raj, joint secretary in India's Ministry of Power, at an industry event by the Federation of Indian Chambers of Commerce and Industry.

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India's first priority was ensuring adequate electricity supplies, followed by making power affordable, sustainable and reliable, Raj said, describing energy security as a national security issue.

India is also looking beyond burning coal for electricity and towards coal gasification to produce hydrocarbons, which Raj said could replace imports.

The comments highlight the challenge facing India as rapidly increasing electricity consumption requires it to expand coal-fired generation even as the world's third-largest greenhouse gas emitter accelerates the addition of cleaner power sources.

Coal will still account for about half of India's electricity generation in 2035-36, said Praveen Gupta, a senior official at the Central Electricity Authority, an adviser to the power ministry.

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India currently has around 224 gigawatts of coal-fired capacity and plans to raise that to about 315 GW by 2035-36.

India has about 50 GW of coal capacity under construction, including 31 GW awarded over the past two years, Gupta said.

Another 15 GW has been awarded but construction has yet to begin, while about 10 GW to 11 GW of additional capacity needs to be awarded, with potential projects at various stages of approval, Gupta said.